Texas Dealer April 2020 by Texas Independent Auto Dealers Association

COVID-19 and the

Independent Dealer

For the most up-to-date information related to COVID-19 and how it is impacting independent dealers go to www.txiada.org/covid-19

Vo l u m e X X / I s s u e 4 / A p r i l 2 0 2 0

2020 TIADA Board of Directors

TexasDealer

PRESIDENT Robert Beck/Stop N’ Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 PRESIDENT ELECT Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 CHAIRMAN OF THE BOARD Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 SECRETARY Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 TREASURER Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 ICE PRESIDENT, WEST TEXAS V (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, FORT WORTH V (REGION 2) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 ICE PRESIDENT AT LARGE V Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 ICE PRESIDENT AT LARGE V Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503

TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

5 Officers’ Message 6 7 7 8

contents

by Robert Beck, TIADA President

T IADA Member Application Membership Corner Local Chapters On The Cover: COVID-19 and the Independent Dealer by Peter Salinas

10 Coronavirus, Car Dealers and Collections: What Does It Mean for You? by Jessica Cumbee

13 L egal Corner: Options for Dealing With the Voluntary Return of Collateral by Michael W. Dunagan

17 5 Most Popular Compliance Blogs This Year by TIADA Staff

22 T IADA Auction Directory 2020 24 TIADA Conference and Expo 31 Six Essential Elements to Monitoring Lead Handling by Joe Webb

33 March Madness Bracket Results 35 Why Customers Hate to Be Sold by Stu Schlackman

37 The Auction Perspective – A Q&A with Manheim During COVID-19 by Texas Dealer staff

39 Taxability Issues on Service Contracts and Repairs Provided by the Office of the Texas Comptroller

44 Coronavirus Emergency Measures

Provided by the Texas Office of Consumer Credit Commissioner

45 N ew Members 46 Behind the Wheel by Jeff Martin

Did You Know?

1,233 copies of the March issue of the Texas Dealer magazine were mailed last month? That is the answer to the tiebreaker question on our March Madness Best Year for TIADA Bracket. Turn to page 33 to see the results and find out if you are the winner. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Teresa Orkun Magazine Ad Sales: Patty Huber, 512-310-9795

officers’ message Pre-Licensing Education: A Long Time Coming in Our Industry

ebruary 6th was a momentous day for the Texas independent dealer body. On this date the Texas Department of Motor Vehicles Board voted unanimously in passing a rule to require individuals who want to operate as an independent dealer in Texas to first successfully complete an online pre-licensing course. And, in an effort to “catch-up” on those independent dealers who have in recent years obtained a license before this requirement was in place, dealers who have had their license for less than 10 years will also be required to complete a shortened version of the course. I call this day momentous for a couple of reasons. This new requirement will save countless new dealers the headache and pain of negative results following a compliance audit or examination several months or even years after opening their doors, wherein they find out they’ve been doing something wrong, even inadvertently. The pre-licensing course requirement will raise the level of professionalism in our Texas dealer body. When my business partner and I opened up in 2005, we took a wide-open approach to learning about this business. We were members of TIADA even before we officially opened our doors. We attended every compliance seminar offered by the association we could reasonably physically get to, especially the summer conference. Many were facilitated by our General Counsel Mike Dunagan. We even attended some of the courses offered by the Texas Department of Transportation. But let’s face it, the path my business partner and I followed in learning the ropes of this business is not typical of many new dealer licensees. Now, ALL new licensees will at least be aware of the basic requirements and pitfalls to avoid in operating as an independent automobile dealer. This will be good for the reputation of the entire Texas independent dealer body.

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by Robert

Beck

Stop N’Drive Motors (San Antonio) TIADA PRESIDENT

Required pre-licensing education for independent dealers has been a goal of TIADA for almost 15 years. We have talked about and advocated for it in the legislature because we are passionate about dealer education and our reputation among everyday Texans. We’ve been supportive of the enabling legislation, helpful in addressing the concerns of the Governor regarding the purpose of the pre-licensing rule, and we have advocated for its final implementation by the TxDMV board; all because our commitment to dealer education is one of the mission statements of our association. Dealer education is one of the reasons TIADA exists as a professional dealer association. This new rule has not been designed to create barriers or to make entry into our industry more difficult. In fact, we welcome new dealers into the Texas independent dealer body; we want new dealers to be successful, and to be able to remain so, because they are compliant. We wouldn’t offer all the education we have offered for decades to help dealers be successful if we had wanted to create barriers to entry into this industry. As I mentioned, the course will be online and will be about six hours. It will focus on the laws, rules and regulations associated with holding an independent dealer’s license. The course will also cover the consequences of when a dealer is not compliant. Another part of this rule implemented by TxDMV is to require any dealer who has only been in business for 10 years or less to also take a one-time online course prior to the next renewal of their license. The course for existing dealers will be shorter in length and will focus on the areas TxDMV finds most dealers struggle with. I cannot think of anything we could do to make our industry more professional and respected among our neighbors in the great State of Texas. I’ll be the first to tip my hat to the state in providing for this new rule. 5

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membership corner

ber s h ast month, we shared i em TIADA’s membership 2020 goal for 2020. Since then, we’ve been tracking Goal for2020 the association’s progress 1303 1300 on membership for both renewed and new members 1250 and wanted to talk some 1150 numbers with you by providing an update. TIADA 1100 kicked off March with 1003 Currently 1031 members strong and at 1000 printing time we are at 1031, an increase of 28 members so 900 far this month. If you recall, the goal for 2020 is 1303, which means the association would need to see an average increase of approximately 30 members per month to reach its goal for 2020. Historically speaking, at least based on the past five years (2015-2019), TIADA gained an average of 36 members per month. That said, is this year’s goal attainable? Through our collective efforts, absolutely. Ready to spread the word? Some of you have already started participating in the 2020 Recruitment Challenge by encouraging other independent dealers to join the association. Why is doing so that important? Simply put, the higher the membership, the stronger the voice of our industry.

Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at www.txiada.org)

EL PASO Ricardo Gardea Cars Plus Meeting – 3rd Friday (Monthly)

FORT WORTH Chris Templin Auto Land Meeting – 4th Thursday of Jan–May and Sep–Oct

HOUSTON Rudy Roudbari Sarco Enterprise Meeting – 2nd Tuesday (Monthly)

SAN ANTONIO Jose Engler Irving Motors Corp (dates announced at www.txiada.org)

VICTORIA Jose Engler of Irving Motors welcomes new member Mansour Heidari of Payam’s Auto Plex during TIADA Day at the Auction at Manheim San Antonio.

Members can participate in the 2020 Recruitment Challenge by reaching out to dealers they know and inviting them to get involved with their association. For questions on how you can participate, please contact TIADA at 512.244.6060 or email: membership@txiada.org.

Dennis Schroller Victoria Autos Direct Meeting – 1st Monday (Monthly)

Track TIADA’s Latest Progress @TXIADA #2020Goals

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on the cover by Peter Salinas Freelance Writer

COVID-19 (Editor’s Note: Please keep in mind this article was prepared with interviews from mid-March. As you know the situation with the COVID-19 virus and its effects on global, national, and local economies has been and remains fluid. It is important to remain vigilant in protecting the health and safety of you, your employees, and your customers, and heed the recommendations of state and federal authorities.)

espite seeing foot traffic down by 50 percent at his stores, which includes one in El Paso and two in Arizona, Scott Lehman is doing his best to remain optimistic. He employs 25 people at his lot in El Paso and moves about 100 units a month at the retail store that sells to the prime and subprime markets. “We have created a ‘Clean Freak Squad’ that spends their entire day cleaning hard surfaces in the dealership and wiping down vehicles both before and after test drives to do our best to keep everything germ-free,” he said. “We were fortunate to find a concentrated cleaner

and the

Independent Dealer

“My concern is with the people who have been impacted by this outbreak, and what my individual contribution can be to mitigate their suffering,” said Scott Lehman, owner of the El Paso Auto Center. “The virus and fear are highly contagious, but understand that positive attitude, kindness, and caring are even more so.”

you mix with water, so right now we’re good there.” He also purchased a large quantity of single-use pens, so when a customer inks a deal, they keep it. They have also made a concerted effort to remove any barriers to selling a car. “We are able to complete a lot of work online and over the phone prior to the customer coming in,” Lehman said. “If necessary, we can deliver the car to the customer, and in some instances, complete the entire deal at the customer’s residence.” April Hanson, market director for Coast to Coast Motors, a chain of nine buy here-pay here dealerships in Texas and Oklahoma, said

senior management for the group has met several times to discuss their response to the unprecedented pandemic. The dealership group has five locations in Houston, and four more locations in Enid, Tulsa, and Oklahoma City. The dealership moves between 500-600 units a month and has more than 8,500 active accounts. Hanson said the dealership has put in place common sense measures to ensure their locations are clean and employees are as safe as possible. “We have a very large collections center and were able to move our employees apart from one another,” T e x a s

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she said. “We had difficulty in locatMoore has already spoken with ing wipes and hand sanitizers, but his banker about his credit line, we were able to locate enough for a and he said the discussion was while.” good. However, there is so much Hanson said there have been no uncertainty that he feels that may issues with employees being sick, change soon. He’s also had discusand no employees have expressed sions with his employees. concern about coming into work for “I’ve told my people that if they fear of becoming sick. feel ill to go home, of course, but “We thought there if they feel they would be, but we cannot work bediscussed this very cause of the fear of “I’ve been through issue with our hucatching the virus the financial crisis, man resources manor just the stress, ager and there have they can go home, and 2001, but this been no issues as no problem,” he yet,” Hanson said. said. “I also told feels different.” Russell Moore, them I can’t pay owner of Top Notch them for not workRussell Moore Used Cars in Conroe, ing. If they want Top Notch Used Cars Texas, said this is his to go to the unemConroe, Texas first “apocalypse” ployment office, I as an independent won’t fight it.” dealer, as he started in the buy-here Lehman said he’s seen no suppay-here business in 2013. His dealply chain issues at any of his three ership has 10 employees and moves locations, except for the cleaning about 30 units a month. supplies, which were hard to find “We’re concerned about everything everywhere. “Customer traffic is just like everyone else,” Moore said. way down, but with those custom“Texas has had an oil boom here for ers who arrive at the dealership years and with oil below $30 a barrel, the sales rate is high. Customers things could get very bad quickly. I’ve who venture out need transportabeen through the financial crisis, and tion, and that’s why they show up.” 2001, but this feels different.” Hanson said there have been He’s intensified the cleaning efno supply chain issues with fuel, forts at the dealership. All surfaces parts, or other essential items to are cleaned multiple times a day operate the Coast to Coast stores. and though already intense, his re“Our customers can search inconditioning of vehicles has been ventory, upload their stips such as upgraded. phone bills, proof of income and “We’re using cleaners with stronproof of residency online,” she ger disinfectants,” he said. “We have said. “If they don’t have a scanner, always cleaned vehicles using extracthey can simply take photos of the tors, disinfectants, and we’ve always documents and email or upload changed cabin air filters. After a test them online.” drive, we clean the vehicle using She said tax season was very disinfectant wipes. We’re demanding strong, and the dealerships had that everyone wash their hands and bulked up on inventory, and it use sanitizers.” doesn’t appear there will be any As for his customers, Moore said, issues in securing vehicles at it’s early on in the process but as a auction, as most auctions have lender to many lower-wage earners ramped up their online sales. who work in hospitality and food “Our goal for March was to service industries, he foresees a rise move 665 units, and we’re still on in delinquencies. track to do that,” she said. “We are April 2020

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635 Fritz Dr. Ste 210 Coppell, TX 75019 469-637-0150

Coronavirus, Car Dealers and Collections:What Does It Mean for You? By Jessica Cumbee, Compliance Attorney As we are all well aware, the Coronavirus (COVID-19) is spreading rampant throughout the country and throughout the world. While we advise everyone to stay up-to-date on the latest updates and information by visiting the Center for Disease Control’s website, www.cdc.gov, we would like to provide you with a few tips for protecting your customers, your employees and your business. OSHA has also published a guide for preparing the workplace for COVD-19, which you can find here: https://www.osha. gov/Publications/OSHA3990.pdf. OSHA’s General Duty Clause, Section 5(a)(1), requires employers to provide a workplace free from recognized hazards likely to cause death or serious harm. Symptoms of the COVID-19 include mild to severe respiratory illness with fever, cough, shortness of breath and difficulty breathing, and the CDC states that symptoms may appear in as few as two days or as long as 14 days after exposure. The virus is spread mainly from person-to-person through close contact or through respiratory droplets, which can be picked up from close contact or from contact with infected surfaces such as desk, door handles, steering wheels, computers, etc. Preventing the spread of germs is essential for the safety of your customers and your employees. Here are a few tips for your employees on how to prevent the spread of germs: 1. Wipe down your vehicles before and after all test drives or service. 2. Have hand sanitizer placed strategically around your offices, including, by doors, on desks and in waiting areas. 3. Avoid shaking hands as much as possible. In the event that you do inadvertently shake hands, make sure that you both sanitize your hands thoroughly. 4. Avoid touching your face as much as possible. Again, sanitize or wash your hands thoroughly if you do touch your face. 5. Cover your coughs or sneezes with your elbow and monitor yourself for signs or symptoms of COVID-19. 6. This last tip shouldn’t surprise you, but when you use the restroom, WASH YOUR HANDS thoroughly. Sing the Happy Birthday song twice in your head, or out loud if you prefer a bit of a concert, and make sure you get the back of your hands too. As a business owner, it is important to protect yourself too. Please refer to OSHA’s guide described above. Develop an Infectious Disease Preparedness and Response Plan, which could include things like allowing employees to work from home or in staggered shifts so as to avoid as much contact with other people as possible; provide tissues, hand sanitizers, soaps and disinfecting wipes; discourage employees from using other employees’ phones, computers, desks, etc.; do not require a doctor’s note for employees who are sick, as healthcare providers may not be able to keep up. Your employees are your most valuable asset, so make sure you communicate with them and prepare a flexible plan to protect both them and your company. Monitor local, state and federal updates. 10

pleased so far. Just this morning, we had a meeting and our sales team said the people coming in were buyers, and not just looking.” El Paso Auto Center’s Lehman said some of his lenders have begun to offer ‘no payments for 90 days’ programs, and that’s attracting a lot of people who need transportation now and gives them the space to buy now. “We haven’t seen any issues with getting people financing,” Lehman said. “I think with interest rates going lower, you’ll see banks eager to lend more money. “My concern is with the people who bought last month and now have lost their job and are facing their first payment,” Lehman said. “We’re actively searching for ways to help them out. We’re also considering offering a $250 gift card to local restaurants for our customers to use later. This will help those restaurants a lot with cash now. They are an important part of our community.” Like so many others, Lehman is awaiting what Congress and the federal government will do regarding paid sick leave for those who either contract or are exposed to COVID-19. “We are already thinking about offering emergency paid sick time for our employees if they or a family member becomes ill, so they don’t have to feel as though they must come into work to avoid losing a check.” With shutdowns occurring throughout the economy, Coast to Coast’s Hanson said management foresees hardships and delinquencies from customers. “We always try to have good communication with our customers, and that’s going to be even more important going forward,” Hanson said. “If we have a good-paying customer who loses a job, we’ll work with them. Now is not the time to turn your back on people. This is a time to be human. This is a risk business, and we’re used to it.” “I have a policy where if the customer is $500 behind, we go get the car,” Top Notch’s Moore said. “I may work with them, if I can, but they will have to prove the hardship. If they aren’t working, they aren’t putting miles on the collateral. I’ll talk with them and let them know that bills like electricity and water can be caught up at a later time without immediate consequences, but keeping their transportation is vital to their health and safety.” Moore noted that it takes 30 days to make a habit, and he’s concerned with the future. “I’m wondering what the landscape will look like 30 days from now,” he said. “If it’s longer than that, the landscape may look far different. Moore said he wants TIADA and NIADA to lobby on behalf of the industry to ensure that liquidity is made available to dealership through the Small Business Administration. “If we as an industry can get some assistance from floorplanners and finance companies, that would be a great help as well.” T e x a s

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legal corner

Options for Dealing With the Voluntary Return of Collateral by Michael

Dealer Question: I’ve recently had a number of my BHPH customers drop off their cars because they can’t pay for them due to lost jobs or other economic issues. How should I handle these situations? Answer: The voluntary return of a vehicle is often the result of a job loss or financial problem that prevents the debtor from making car payments. Given the current economic and employment climate caused by the Coronavirus pandemic, many creditors are reevaluating their collection policies and procedures especially with regard to voluntary returns. A contract modification to move one or two installments to the end of the contract may keep a good customer in a vehicle, even when income is temporarily impaired. Or, a voluntary return may be the result of a case of buyer’s remorse. And, not uncommonly, the return may be a case of “trade dumping” where another vehicle is being purchased from someone else and the buyer has been advised to return the existing vehicle, often with the reassurance that there will be no negative repercussion (we’ll discuss this situation below).

voluntary return is usually considered to be a good thing, since it eliminates the need to repossess the car and the attendant risks and costs associated with the repossession process. Further, if the debtor signs a voluntary waiver of rights,

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the creditor’s obligation to send repossession notices, to hold the car during the waiting period, and to account for the resale proceeds, are eliminated. In the case of a voluntary return, the creditor has three basic options. First, the return can be handled with a mutual waiver form in which each party releases the other from any further obligations. The creditor forgives any balance owed (or deficiency) and the debtor waives the right to notice of disposition or accounting for any surplus and signs over all ownership right to the vehicle to the creditor. The second option is to send a strict foreclosure (or acceptance of collateral in satisfaction of indebtedness) form. This would usually be done if, for instance, the debtor dropped off the vehicle after hours and can’t be reached to sign a mutual waiver. As in all strict foreclosure situations where a signed waiver can’t be obtained, this process is subject to the 60-per-cent rule and requires a 20-day holding period. The 60-per-cent rule means that if more than 60 per cent of the original purchase price has been

Dunagan

TIADA GENERAL COUNSEL

Given the current economic and employment climate caused by the Coronavirus pandemic, many creditors are reevaluating their collection policies and procedures especially with regard to voluntar y returns. paid, and the creditor can’t obtain a signed waiver, the creditor can’t use involuntary strict foreclosure and must use the private sale process discussed below. If no written objection to the strict foreclosure process is received from the debtor in the 20-day holding period, ownership reverts to the creditor and the unit can be disposed of in any method the creditor chooses, and no accounting need be made to the debtor. Of course, any balance is 13

forgiven, and the debtor can’t seek to collect any deficiency or report a deficiency to a credit bureau. (3) The third option is to handle the voluntary return as a repossession and use the private sale method of disposition (this process is required if the debtor doesn’t sign a waiver and the more than 60 per cent of the original sales price has been paid). In the private sale scenario, a private sale notice letter is sent advising the debtor that, if the vehicle is

not redeemed within a given period of time (usually 10 days from the date the notice is sent), the collateral will be disposed of in a commercially reasonable manner (either a retail or wholesale transaction) and the amount realized from the sale will be applied to

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the indebtedness. If a deficiency exists after the resale, the creditor can reserve the right to seek to collect the deficiency (and report it to a credit bureau). But the creditor is obligated to report any surplus (that is, any amount that the sale price exceeds the balance) and pay that amount to the debtor. Obviously, a mutual waiver (or if that’s not possible, a strict foreclosure) would be the preferred resolution, both for the debtor and creditor, in a case involving a voluntary return caused by an economically stressful situation, especially with a cooperative debtor. But are there circumstances where private sale procedures might be a better choice for the car creditor? If a voluntary return appears to be a case of a “trade dump” (a term used in a recent Wall Street Journal article discussing the increase of the practice), the car creditor may want to preserve a deficiency by employing a private sale. The Wall Street Journal article quoted some debtors who reported that they were instructed by the dealer they were trying to buy a newer car from, that the existence of the prior obligation was hurting their credit chances. They were advised that simply returning their vehicles to their creditors (be it bank, credit union, finance company or BHPH dealer) would result in the elimination of their debts without any negative repercussions. These debtors claimed complete surprise when negative credit reports later showed up. The anger of aggrieved consumers might serve as a disincentive to those dealers and salespeople who T e x a s

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suggest that their customers simply dump their trades. Another situation where private sale might be the preferred method of disposal (whether after a voluntary return or regular repossession) would be when a debtor threatens litigation against the creditor. If a deficiency has been properly preserved, it can be used as an offset to damages claimed in a consumer lawsuit. If a strict foreclosure has been used, there would be no possibility of an offset because the indebtedness has been forgiven. The private sale procedure involves more work for the car creditor. That’s one of the reasons that strict foreclosure has become so popular in the last decade or two, especially among BHPH dealers. But the extra work may be justified if a car creditor wants to make a point to a defaulting debtor who wants to be able to

If no written objection to the strict foreclosure process is received from the debtor in the 20-day holding period, ownership rever ts to the creditor and the unit can be disposed of in any method the creditor chooses, and no accounting need be made to the debtor. simply walk away from the obligation. And the other dealer who recommended that the customer return the vehicle with an assurance that there would be no negative consequences may have an angry buyer on his hands.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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feature

5 Most Popular Compliance Blogs This Year Compiled by TIADA Staff

ndependent dealers have a lot to stay on top of as they continue to face a changing landscape related to Texas DMV rules, OCCC updates, title issues, scams, record issues, updates with the Federal Trade Commission / Consumer Financial Protection Bureau, lawsuits, and more. TIADA’s online blog and reference library are great resources to help keep your dealership in compliance and updated with the latest industry news. Here, we take a look back at the five most read blog posts so far for 2020.

You’ve Been Sued, Now What?

No matter how long you’ve been in business, sooner or later your dealership will likely be sued. It may be due to a car with unknown mechanical issues, a representation by a salesperson, contract dispute, repossession, or the result of one of those customers that is just never happy with any service outcome and knows an attorney. First and foremost, answer the lawsuit! The first step you need to do is file an answer after you have

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received a notice of a lawsuit (called a citation). Failure to do so within 21 days may result in a default judgment. Game over. The best bet is to hire an attorney to file an answer on your behalf. This is probably not a good time to read a few online articles and try to do it yourself. Even attorneys hire other attorneys to represent them when they are sued. Don’t ignore Texas Deceptive Trade Practices Act letters also known as DTPA letters. Attorneys will often send a DTPA before they file a lawsuit in order to treble or “triple” damages. Example, that $4,000 demand just became a $12,000 potential claim with attorney fees and costs of court if you lose. PRO TIP: DTPA require very specific responses and objections. Failure to property respond to a DTPA letter can cost you later on. Stop talking to the customer after suit. Even after service of suit, many dealers will still try to negotiate a good deal after the fact to get out of the lawsuit. Not a good idea. If you think you are about to be sued or have 17

already been sued and the customer or their spouse, partner, or cousin calls on their behalf, you should assume you are being recorded. The customer or their agent is probably trying to get recorded information to be used against you later on. You should have your attorney talk to the customer’s attorney. Instruct office staff and employees to send all customer calls to your attention and to not provide any additional information without your express permission. Get ready for discovery. Every written email, text, note, file, loan, contract that relates to that customer is going to be subject to discovery and is generally available to the other side. This can even include prior loans and cars. Be careful! Don’t text or email anything to anyone about the plaintiff. Pick up the phone or speak in person. PRO TIP: Don’t scrub or delete folders, emails, texts, file jackets after the fact. This is a violation of the Texas Rules of Evidence and could expose your dealership to significant sanctions by the court. If you’ve been sued by a current customer that wants routine payment or payoff information, you still need to provide this. However, be careful and watch what you say and provide. Give the minimum amount of information on the note, payment, payoff, etc. Document, document, document. Receive a strange call from the customer or an associate? Did the customer come by the dealership and say something or make a

demand or admission about certain facts in dispute or that some third party worked on car or operated the vehicle? Send yourself an email and document what was said. Don’t ever put extra comments or notes in a deal jacket that are not required. Don’t make notes about their race, sex, or orientation. Accepting regular late payments? As noted before, this could open up a waiver claim that your dealership allows late payment. Don’t let a side note or other “handshake” agreement modify a contract. Again, it is a best practice to have written procedures and guidelines in place and to follow them every time. Dealers that make a special exception to a customer often become the subject of litigation.

Auto Dealers Face Latest Scam, Credit Privacy Numbers

In a recent undercover investigative report by NBC 5 Investigates, Sgt. Darren A. Schlosser, a longtime friend of TIADA, worked with the news station in the Dallas-Fort Worth area to better understand how Credit Privacy Numbers (CPNs) are being marketed and sold by some as a way to repair credit. “This story is covering the fastest growing trend I see in the vehicle finance fraud world. Identity theft is easy to recognize as a crime, [but] a real person using a CPN is much more difficult to investigate. What makes it worse is that normally law-abiding citizens are being falsely convinced that a CPN is a legal way to repair credit,” said Schlosser. “The number of CPN cases is increasing, particularly among those who are applying for a car loan,” noted

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Schlosser. With an increase in online marketing, it is important to be weary of ads that encourage you to obtain a CPN. According to the report, some CPNs turn out to be stolen social security numbers with no credit history, a child’s SSN for instance. It is a federal crime to use a CPN on a credit application, so why are some otherwise law-abiding citizens falling victim to this scam? Some may simply want to keep their social security number private or start fresh by building new credit history, and then buy into the idea that the CPN is a good (and legal) option for them. However, when working with a credit repair company, it is important to keep an eye out for some red flags, outlined by the Federal Trade Commission here: www. consumer.ftc.gov/articles/0225-credit-repair-scams. View the NBC Investigates report & Sgt. Schlosser’s interview here: https://bit.ly/39kelj7.

and the dealership can save a few bucks in tax, title, and license fees submitted to the local tax assessor collector. Hedging their bets may work in Vegas “some” of the time, but the house always wins. “We sold a car without a valid inspection and cannot register.” Dealers often believe they can just call their customer to come in for a quick inspection and everyone will be on their way. Time and time again, we hear the common issue of a customer not responding to calls or texts, but not yet late on their second payment. Talk about a prompt change of bargaining, the dealer REALLY needs that customer to help them, not the other way around. Again, this presents another potential TxDMV enforcement action.

TEXAS BUYER

1 5 2 48F078-1M 8-2020 WITH RARILY REGISTERED

THE VEHICLE TEMPO

Sgt. Schlosser has shown a commitment to educating dealers on spotting customer fraud. He was a speaker at the TIADA Conference & Expo in 2018 and 2019 and has presented at various local chapter meetings.

April 2020

T e x a s

D e a l e r

L P

EXPIRES 2019 DODGE

63 VIN 1B7MC33176362XJ Cars d Use ’s Alan : LER SEL

Expired Buyers Tags Cause Headaches

I will register the vehicle on time. I will register the vehicle on time. I will register the vehicle on time. We hear this all the time, but some dealers are better than others at promptly registering a car after a sale. All dealers know they are required by law to register a vehicle after sale. Dealers must file within 30 days of a retail sale and within 45 days on a seller financed sale that included deferred sales tax. In both scenarios, title should be recorded well before any noted deadline as a prompt filing will help avoid serious problems later. The buyers tag for each vehicle issued and printed via eTAG lasts for a full 60 days. If the dealer is unable to obtain metal plates for a buyer due to unforeseen circumstances the dealer may be eligible to purchase a 30-day permit from the local tax assessor collector where the vehicle will be operated. The 30-day permit fee is $25 and there is a $4.75 processing and handling fee. You may also be required to surrender window stickers and plates. So why are dealers not transferring titles promptly? The most common excuse is that the dealer has not yet received the title from the auction. Remember, don’t sell a vehicle without the title in hand! A promise to deliver a paper title is just hopeful optimism. Selling a car without the title in your possession is the easiest way to become the subject of an enforcement action with the Texas Department of Motor Vehicles. Such penalties “may” reach up to $10,000, but not always. Another common scenario is that the dealer is waiting to see if their BHPH customer misses the first payment. The dealer is betting the customer will miss the payment

A S

STATE UNDER TAG

My Dealership Hours of Operation Have Changed, Now What?

Many dealers give a lot of thought to the state premises requirements prior to opening or during the initial licensing processes. Hours and days the dealership will be open are one of the items on the checklist that dealers often consider before they hang a shingle and start selling cars. And with good intentions, that is how the dealership operates for years. However, like any business, dealerships mature and change over time, and if that includes changing your hours and days of operation, you should notify the state. It is important to meet the state premises requirements at the time the application is submitted; at any point during the process, TxDMV can request a site visit and failure to have all requirements in place could result in penalties. A few things to remember for your retail location: A dealer must be open at least 4 days per week. And they must be open at least four consecutive hours on those days. A dealer can be open on Saturday or Sunday, but NOT on both consecutively. The Blue Law only applies to “self-propelled vehicles.” Towable traveltrailers, utility and semi-trailer sales are exempt. The hours that you’re open must be posted at the main entrance to your building, accessible to the 19

public. If you have a gate around the outside of your lot, then be sure to post the hours there so people will know your hours when they are trying to access your building after hours. You must have either an owner, or a bona fide em ployee, present during those business hours to buy, sell, or exchange vehicles. The question that always comes up is “I am a two person operation. What if no one is available because we have to go to the auction, tax office or somewhere else — what do we do?” If an owner or employee is not available during business hours, then a “Be Back” sign must be posted indicating the time and date of the return. Regardless of your business hours, your business phone must be answered by an employee, answering service, or voicemail from 8am to 5pm on weekdays. You can use a mobile phone, but the requirements are the same and the mobile phone needs to be listed under the dealership’s business name. If you do change the hours or days of operation at your dealership, be sure to notify TxDMV through the eLICENSING portal on the TxDMV website. More information on how to amend your dealer’s license

can also be found on the TxDMV website under the eLICENSING Resources page: txdmv.gov/dealers/ licensing/elicensing-resources.

Crackdown on Fraudulent Temp Tags

Fraudulent temp tags are a headache for every reputable dealer in Texas. Dealers who misuse those tags risk license revocation and heavy fines. Remember, the dealer is responsible for all temporary tags printed under their P number. The best way to protect yourself is to use vehicle specific temporary tags. If you use agent-specific tags, make sure you cancel these tags when they are not being used. These tags are easily counterfeited, and if the tag is not a vehicle specific tag or it has not been canceled, it can create a lot of unnecessary trouble for the dealer. Last, know who has access to your webDEALER account and keep your credentials up to date. This is your industry, let’s take care of it. See how law enforcement is cracking down on fraudulent temp tags in this week’s featured video “Thousands of fake paper tags posing dangerous problem on Texas roads,” which can be viewed here: https://bit.ly/39kth0T.

Garage Liability Kevin Smith Insurance is now Tri-State Dealer Services. With expansion and coverages being available outside of Texas, we’ve changed our name to better suit the areas of our growing agency.

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Tri-State Dealer Services is one of the largest writers of Garage Liability in the state. We work with several A+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick” 10-minute quote!

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D e a l e r

April 2020

STARTING TUESDAY APRIL 7 TH

NEW SALE DAY

NEW

North Houston

SALE TIME

AMERICAâ&#x20AC;&#x2122;S AUTO AUCTION NORTH

HOUSTON SALE MOVING TO

TUESDAYS AT 1:00PM

BUY ONLINE AT www.AmericasAutoAuction.com

Atlanta, GA Austin, TX Baton Rouge, LA Birmingham, AL Boston, MA Bowling Green, KY

Chicago, IL Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX

Interstate 94, MI Jacksonville, FL Kansas City, MO Lancaster, PA North Houston, TX Pensacola, FL

Austin

LOCATIONS IN TEXAS

Dallas

TUESDAYS & THURSDAYS AT 1PM 219 N. Loop 12 Irving, Texas 75601 Phone: 972.445.1044

Pittsburgh, PA St Louis, MO Tulsa, OK Virginia Beach, VA West Michigan, MI

TUESDAYS & THURSDAYS AT 1PM

16611 South IH 35, Buda, Texas 78610 Phone: 512.268.6600 Houston

THURSDAYS AT 1:30PM

1826 Almeda Genoa Rd, Houston, Texas 77047 Phone: 281.819.3600

AuctionCredit is located within each of our Texas facilities for all of your auction financing needs. www.auctioncredit.com

North Houston

NEW BEGINNING APRIL 7TH

TUESDAYS AT 1:00PM 1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

TIADA Auction Directory 2020

Save thousands on buy or sell fees at these participating auctions! * VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS ** ONLINE AUCTION AVAILABLE

Abilene

INSURANCE AUTO AUCTION AUSTIN*

ALLIANCE AUTO AUCTION ABILENE

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325.691.0263 GM: Brandon Denison Friday, 10:00 a.m.

$AVE : $200

www.cmauctions.com

2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 GM: Gregory Chittum Thursday, 10:00 a.m. $AVE : $200

METRO AUTO AUCTION AUSTIN

$AVE : $200

Corpus Christi

IAA ABILENE*

CORPUS CHRISTI AUTO AUCTION

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073 GM: Terrie Smith Thursday, 9:30 a.m.

www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 GM: Hunter Dunn Friday, 10:00 a.m.

$AVE : up to $200 Sell Fee

$AVE : $200

Amarillo

IAA CORPUS CHRISI*

IAA AMARILLO*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 GM: Patricia Kohlstrand Wednesday, 9:00 a.m.

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678 GM: Shawn Norris Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex

Austin

ADESA DALLAS

ADESA AUSTIN

www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 GM: Allan Wilwayco Thursday, 9:30 a.m.

www.adesa.com 2108 Ferguson Ln, Austin, TX 78754 512.873.4000, Fax 512.873.4022 GM: Rich Levene Tuesday, 9:00 a.m.

$AVE : $200

NEW

ALLIANCE AUTO AUCTION DALLAS

www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Wednesday, 9:45 a.m.

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 GM: Chris Dean Wednesday, 1:30 p.m.

AMERICA’S AA AUSTIN / SAN ANTONIO

AMERICA’S AA DALLAS

$AVE : $200

www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 GM: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.

$AVE : $200 22

$AVE : up to $200 Sell Fee

www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 GM: Brent Rhodes 3rd Saturday, monthly

C.M. COMPANY AUCTIONS, INC.

ALLIANCE AUTO AUCTION AUSTIN

www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m.

$AVE : $200

www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 GM: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

$AVE : $200

IAA DALLAS*

www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 GM: Joshua Boyd Wednesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

IAA DFW*

www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 GM: Robert Brown Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

IAA FORT WORTH NORTH*

www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541, Fax 940.648.5543 GM: Jack Panczyk Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

MANHEIM DALLAS**

www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 GM: Rich Curtis Wednesday, 9:00 a.m.

$AVE : $100

MANHEIM DALLAS FORT WORTH**

www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 GM: Nicole Graham-Ponce Thursday, 9:30 a.m.

$AVE : $100

METRO AUTO AUCTION DALLAS

www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900, Fax 972.492.0944 GM: Scott Stalder Tuesday, 9:00 a.m.

$AVE : $200

TEXAS LONE STAR AUTO AUCTION www.tlsaa.com

2205 Country Club Dr., Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 GM: Patrick Stevens Tuesday, 1:00 p.m. / Thursday, 2:00 p.m. $AVE : $200

El Paso EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 10:00 a.m.

$AVE : $200

T e x a s

D e a l e r

April 2020

IAA EL PASO*

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 GM: Jorge Resendez Friday, 10:30 a.m.

$AVE : up to $200 Sell Fee

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 GM: JD Guerrero Thursday, 10:00 a.m.

$AVE : $100

$AVE : up to $200 Sell Fee

www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Christina Nieves Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

MANHEIM HOUSTON

Harlingen/McAllen IAA MCALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 GM: Lisa Franz Thursday, 9:30 a.m.

$AVE : $200

www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 GM: Brian Walker Tuesday, 9:00 a.m. / Thursday 6:30 p.m.

$AVE : $100

MANHEIM TEXAS HOBBY

www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 GM: Darren Slack Thursday, 9:00 a.m.

$AVE : $100

Longview ALLIANCE AUTO AUCTION LONGVIEW

Houston ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Angela Williams Wednesday, 9:00 a.m.

$AVE : $200

AMERICA’S AA HOUSTON

www.americasautoauction.com 1826 Almeda Genoa Rd, Houston, TX 77047 281.819.3600, Fax 281.819.3601 GM: John Swofford Thursday, 2:00 p.m.

$AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney Monday, 6:30 p.m.

$AVE : $200

AUTONATION AUTO AUCTION - HOUSTON www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Juan Gallo Friday, 9:30 a.m.

$AVE : $200

HOUSTON AUTO AUCTION

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 GM: Tim Bowers Tuesday, 1:00 p.m.

$AVE : $200

T e x a s

www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 GM: Alvin Banks Wednesday, 9:00 a.m.

IAA HOUSTON NORTH*

MANHEIM EL PASO

April 2020

IAA HOUSTON*

D e a l e r

www.allianceautoauction.com 6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 GM: Chris Barille Friday, 10:00 a.m.

$AVE : $200

IAA LONGVIEW*

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: David Cooper Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Lubbock IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Lori Davee Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 Wednesday, 9:30 a.m

$AVE : $75/Quarterly

Lufkin LUFKIN DEALERS AUTO AUCTION

www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 GM: Wayne Cook Thursday, 6:00 p.m.

$AVE : $200

Midland Odessa IAA PERMIAN BASIN*

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 GM: Christopher Rogers Thursday, 11:00 a.m.

$AVE : up to $200 Sell Fee

ONLINE ACV AUCTIONS**

www.acvauctions.com 800.553.4070

$AVE : $250

San Antonio ADESA SAN ANTONIO

www.adesa.com 200 S. Callaghan Rd San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 GM: Clifton Sprenger Thursday, 10:00 a.m.

$AVE : $200

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: Brian Sell Monday, 9:00 a.m.

$AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 GM: Mike Browning Wednesday, 9:00 a.m.

$AVE : $100

SAN ANTONIO AUTO AUCTION**

www.sanantonioautoauction.com 13510 Toepperwein Rd. San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m.

$AVE : $200

Tyler GREATER TYLER AUTO AUCTION www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 GM: Wayne Cook Tuesday, 5:00 p.m.

$AVE : $200

Waco ALLIANCE AUTO AUCTION WACO

www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Carmen Robinson (Sales Manager) Friday, 10:00 a.m.

$AVE : $200

The best dealers in Texas, the best education anywhere.

August 16–18, 2020 JW Marriott San Antonio Hill Country Resort & Spa

“The best organized state convention I have ever attended. Dealer panels is a great asset. Couple that with the professionalism of the staff and attendees makes a great event.” – HENRY MULLINAX, NIADA PRESIDENT/ MULLINAX AUTO SALES - ANNISTON, AL

T e x a s

D e a l e r

April 2020

by the numbers

Over hours of top notch education

125

quality vendors in the expo hall

“This is my first time attending the conference. I walked away with several key pieces of information that will positively impact the future of our dealership.” – AUSTIN HUNTER, SPEEDWAY MOTORS, AUSTIN, TX

Dealer attendance “The conference NEVER disappoints, I leave there every year with great ideas for my business!” – JUSTIN BROWNING, BROWNING’S RELIABLE CARS & TRUCKS - WICHITA FALLS, TX

April 2020

T e x a s

D e a l e r

has increased

214% 300+

over the

last 10 years, expect over

dealers

this year. 25

Thank You

P L A T I N U M

L I M I T E D S P O N S O R S H I P & E X H I B I T I N G O P P O R T U N I T I E S AVA I L A B L E

OUR

Sponsors

CURRENT G O L D

W Walker Auction Group W Walker Auction

S I L V E R

S P E C I A L T Y

ACV AuCtions – Happy Hour V12 softwAre – Lanyards PrimALend CAPitAL – Meeting Digital Signage B R O N Z E Auction Credit Enterprises Ignite Consulting Partners Neo

AUL Corporation Lobel Financial

Big Valley Auto Auction

Microbilt Corp.

Tax Refund Services–Tax Max

El Paso Independent Auto Auction

MyCarCarePlan.com/Car Care Promotions Inc Wayne Reaves Software

C O N TA C T PAT T Y H U B E R AT PAT T Y. H U B E R @ T X I A D A . O R G / 5 1 2 . 3 1 0 . 9 7 9 5

Grou

Dealer Registration Options

Dealership: & ______________ 2020 TIADA Conference Expo

Address: _______________ August 16-18, 2020

 Primarily BHPH JW Marriott Hill Country Resort – San Antonio, TX Deale REGISTRANT DETAILS

Customize your conference experience by selecting from the options below. Please complete the registration form and 1st Registrant return it with payment in full to the address listed or for online registration, go to www.TiadaAnnualConference.com.

1st TIME ATTENDEE? Yes No

Name: ____________________________ EARLY BIRD RATE

CONFERENCE OPTIONS

Name for Badge: ____________________ through July 17th Title: ______________________________

Email:_____________________________ Register by July 17th,

Full Conference Pass—Dealers Only (includes Welcome Reception, Monday & Tuesday Education /Sessions, Expo Hall with Lunch on Monday & Tuesday, Awards Reception & Dinner)

1st Registrant 2nd Registrant* 3rd + additional Registrant*

 FULL CONFERENCE ($495 Early Bird

Save $100 per attendee.  ONE DAY PASS ($300)

Circle Preferred Day MONDAY TUES  Expo Hall Guest Wristband (10 & older) $595 $495  Addt’l. Awards Dinner Ticket (10 & olde

$495 $395 $395 $295

3rd Registrant

One Day Dealer Pass

1st TIME ATTENDEE? Yes No

$300 $400____________________________ non-members Name:

(Monday 8/17 or Tuesday 8/18) (includes Monday or Tuesday Education and Expo Hall on your selected day)

Name for Badge: ____________________ Title: ______________________________

Non-Member (Dealers only)

Email:_____________________________ $895 $795

TADA and out-of-state IADA members are eligible for TIADA member rate

 FULL CONFERENCE ($295 Early Bird  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUES  Expo Hall Guest Wristband (10 & older) $99  Addt’l. Awards Dinner Ticket (10 & olde

Session Recordings With Conference Registration Regular (non-attendees)

$399

A LA CARTE

*Registrants must be from same dealership to receive discounted rate

Hotel Accommodations

SESSION RECORDINGS+  $99 with Conference Registra +Approximately

20 hours of recorded brea

SPECIAL MEMBERSHIP TICKET

Discounted guestrooms are available for $229/night plus $5 discounted resort fee for TIADA Conference attendees. Please contact the hotel directly to book your room. Must be reserved on or before July 17th to receive discounted Payment rate. Any room reservation that is cancelled after July 17th will be subject to a late cancellation fee of oneInformation night’s room & tax. No-shows will also be charged one-night’s room & tax.  Make check payable to TIADA.  TIADA is

CC Number_________________________ JW Marriott Hill Country Resort / 23808 Resort Parkway / San Antonio, TX 78261

Name on Card_______________________

Call 210.276.2500 or book online TiadaAnnualConference.com/jwmarriott-hillcountry.com

TIADA | 9951 Anderson Mill Rd,

T e x a s

D e a l e r

April 2020

Dealer Registration

_________________________________________ Dealership: ______________________________________________________ Phone: ____________________ Phone: ____________________

__________________________________City/ST/Zip: Address: ________________________________________________City/ST/Zip: ______________________ ______________________  Primarily Primarily BHPH Retail Dealer Dealer

 Equally Primarily BHPH/Retail Retail Dealer Dealer  Equally BHPH/Retail Dealer

REGISTRANT DETARILESGISTRANT DETAILS

REGISTRANT DETAILS

1st Registrant

2nd Registrant 1st TIME ATTENDEE? Yes No

2nd Registrant st TIME ATTENDEE? Yes No 1st TIME ATTENDEE? Yes 1No

Name: __________________________________________________ Name: __________________________________________________ _______________________ Name: __________________________________________________ Name for Badge: _________________________________________ Name for Badge: _________________________________________ ______________________ Name for Badge: _________________________________________ Title: ___________________________________________________ Title: ___________________________________________________ ______________________ Title: ___________________________________________________ Email:__________________________________________________ Email:__________________________________________________ ______________________ Email:__________________________________________________

FULLBird CONFERENCE ($395 Early Bird through 7/17) FULL CONFERENCE $____ ($395 Early Bird through 7/17) $____ d through 7/17) FULL CONFERENCE $____ ($495Early through 7/17) $____  ONE DAY PASS ($300)  ONE DAY PASS $____ ($300) $____  ONE DAY PASS $____($300) $____ Preferred Day MONDAY TUESDAY Circle Preferred Day MONDAY TUESDAY SDAY Circle Preferred Day MONDAYCircle TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x  ____) Expo Hall Guest $____ Wristband (10 & older) ($99 x ____) $____ ) ($99 x  ____) Expo Hall Guest $____ Wristband (10 & older) ($99 x ____) $____ Addt’l. Awards Ticket (10$____ & older) ($50 x____) Addt’l. Awards $____ Dinner Ticket (10 & older) ($50 x ____) $____ er) ($50 x____) Addt’l. Awards $____ Dinner Ticket(10 & older) ($50Dinner x ____) nd Registrant Subtotal $_____ nd Registrant Subtotal $_____ 2 2 1st Registrant Subtotal $_____ 1st Registrant Subtotal $_____ 3rd Registrant 1st TIME

4th Registrant

st TIME ATTENDEE? Yes No ATTENDEE? Yes 1No

1st TIME ATTENDEE? Yes No

_______________________ Name: __________________________________________________ Name: __________________________________________________ Name: __________________________________________________ ______________________ Name for Badge: _________________________________________ Name for Badge: _________________________________________ Name for Badge: _________________________________________ ______________________ Title: ___________________________________________________ Title: ___________________________________________________ Title: ___________________________________________________

______________________ Email:__________________________________________________ Email:__________________________________________________ Email:__________________________________________________

d through 7/17) FULL CONFERENCE $____ ($295Early through 7/17) $____ FULLBird CONFERENCE ($295 Early Bird through 7/17) FULL CONFERENCE $____ ($295 Early Bird through 7/17)  ONE DAY PASS $____($300)  ONE DAY PASS ($300) $____  ONE DAY PASS $____($300) SDAY Circle Preferred Day MONDAYCircle TUESDAY Preferred Day MONDAY TUESDAY Circle Preferred Day MONDAY TUESDAY ) ($99 x  ____) Expo Hall Guest $____ Wristband  (10Expo & older) x Wristband ____) Hall($99 Guest (10 &$____ older) ($99 x  ____) Expo Hall Guest $____ Wristband (10 & older) ($99 x ____) er) ($50 x____) Addt’l. Awards $____ Dinner Ticket(10 & older) ($50Dinner x ____) Addt’l. Awards Ticket (10$____ & older) ($50 x____) Addt’l. Awards $____ Dinner Ticket (10 & older) ($50 x ____)

3rd Registrant Subtotal $_____

SESSION RECORDINGS+  $399 Regular  $99(Non-attendees) with Conference Registration $____

A LA CARTE

ation

akout sessions

3rd Registrant Subtotal $_____4th Registrant Subtotal $_____

+Approximately

 $399 Regular (Non-attendees)

$____ $____ $____ $____

4th Registrant Subtotal $_____

$____

20 hours of recorded breakout sessions

$100 X _____ SPECIAL MEMBERSHIP TICKETS $____

Payment Information

$100 X _____ A la Carte Subtotal $_____$____

A la Carte Subtotal $_____

Total Amount Due $ ____________ Total Amount Due $ ____________

s hereby authorized  Make check to execute payable payment to TIADA. to thefollowing TIADA iscredit hereby card: authorized  AMEX to execute  Visa paymenttoMC the following  Discover credit card:

 AMEX

 Visa

__________________________________________Exp. CC Number__________________________________________________________________Exp. Date ____________ SVC _________ Date ____________

 MC

 Discover

SVC _________

___________________________Authorized Name on Card_________________________________________________Authorized Signature_______________________________________ Signature_______________________________________

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I TURN TO NEXTGEAR CAPITAL OVER OTHER LENDERS BECAUSE THEY KNOW HOW TO HELP ME DO MORE OF THE ONE THING I DO – SELL CARS. THAT’S MY PATH TO +MORE

KATHY WARD | WARD MOTOR COMPANY | AMARILLO, TX

I want to work with someone who is open and there for me whenever I need them, and to have a lender who is capable of that has been more invaluable than I’ve ever imagined. I need a partner who specializes in the automotive industry, who knows what I do and can help me do it better, and that’s NextGear Capital.

Discover where we can take you. Visit nextgearcapital.com. *This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reﬂecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.

feature

Six Essential Elements to Monitoring Lead Handling by Joe Webb

Founder, DealerKnows

he old adage “You can lead a horse to water, but you can’t make them drink” is never more prevalent than when it comes to training. We regularly see salespeople and Internet specialists given many resources to improve their performance, from the best technology to continuous training. However, even with all the tools provided, that does not guarantee that people will do everything that is being asked of them. Most need ongoing reinforcement. Ongoing reinforcement doesn’t mean more training or more tools, but, instead, more (read: better) management. One area in which we see dealers falling short: handling their Internet leads. The reason management doesn’t know how to improve lead management is because few know what they should be looking for. Since much of our time is spent monitoring and coaching lead handling, we’ve identified six segments necessary to ensure quality lead management is being conducted by dealership staff. Here are six key elements you should be reviewing on every lead to ensure a consistent follow-up approach.

fi Timing

How quick your prospects are contacted back is one of the most statistically critical elements to handling leads. How fast does your team respond on-hours? By phone? By email? By text? If four hours is industry average and most dedicated dealers obtain a one-hour response time, is it possible to have your team execute the same response back in 15 minutes? Recognize that the time intervals of follow-up, initially and ongoing, are imperative to Internet success.

Content

What message are they sending to their prospects? Are their emails answering the customers’ questions? Does it include requested pricing and information regarding availability and incentives as it should? What about multiple pricing options or alternative vehicles? Are you utilizing video in your messaging? Know what your team is sending out.

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fi fi fi

Value

Is your Internet team clearly defining what separates you from the dealer down the street? Are you explaining to customers why they should choose you over your competitors? Ensure your staff is sending out some semblance of a value proposition so prospects can weigh the benefits of your store in comparison to the others.

Engagement

Are Internet prospects responding back to your email templates and calls? Is your Internet Sales Manager engaging them in conversation? Are they asking questions to create a dialogue or is every outbound email in monologue form? No great relationship can be built without a conversation.

Effort

How much effort is your team exerting to contact a customer? Are they following up multiple times ongoing? We have found that dealer staff traditionally spend no more than the first four days attempting to reach a customer before ceasing phone efforts. You must have ongoing phone and email follow-up scheduled to truly contact a high percentage of interested shoppers.

Results

Is your team setting appointments at a reasonable rate? At what percentage do those customers show for their appointments? Of those that show, how many of them are converting to a sale? Without measuring the results, there is little way to adjust strategies to improve the outcome. You must know what metrics you are achieving to pinpoint what weaknesses need to be addressed in your follow-up tactics.

To truly “manage” your team, you must hold them accountable and monitor their daily duties. These are the six key elements that your management team (or Internet Director) should be actively reviewing on leads to ensure that your Internet prospects are receiving the attention and communication they deserve. If they can’t do it, find someone else who can do this for you. Otherwise, you’re simply wasting opportunities to sell a car.

Ignorance is no defense. Know the law. Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 2008 or earlier, it is recommended that you upgrade to the current editions.

Dealer Financing of Used Car Sales This comprehensive book covers all aspects of the complicated world of seller-financing in Texas, including Maximum Finance Rates; Retail Installment Contracts; Contract Amendments; VIT; Repair Charges; Federal Disclosures and more.

TIADA Member Price: $125 (non-members $175)

Texas Automobile Repossession: A Lien Holder’s Legal Guide Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, Post-Disposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.

TIADA Member Price: $125 (non-members $175)

TIADA

Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone. When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days. texas independent automobile dealers association

Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 40 years. His law firm specializes in the representation of independent Texas car dealers.

TIADA texas independent automobile dealers association

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Best Y ear B

for

TIADA

Thank you very much to everyone who took the time to read our March cover story and

played along by completing and submitting their March Madness Bracket. As you can see on the final bracket, the Best Year for TIADA was (drum roll please) 2009. Congratulations to the winner, Blake Ingram, from Auto City in Dallas who, coincidentally, was TIADA’s president in 2009.

2004 2019 2005 2018 2006 2017 2007 2016

2019

2015

2019 2018

2009

2009 Champion 2006

2007 2013

2007 2007

2013 2011

Blake’s bracket scored a total of 50 points (out of a possible 52) and he submitted it along with the following message:

2008 2015 2009 2014 2010 2013 2011 2012

“I’m probably too biased to win but it was a fun exercise that showcased the Association and all the great things it has accomplished. Great idea! Loved it!” April 2020

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Why Customers Hate to be Sold by Stu Schlackman

Owner, Competitive Excellence

ou’ve heard it many times — customers hate to be sold, but they love to buy. Why is that? Think about it, don’t you despise people telling you what to do or giving you their opinion on what they think you should do? Are you happy or mad when a friend tells you what’s wrong with your golf swing and what adjustments to make? Are they such an expert that their recommendation will hold water? Customers are constantly being swamped by salespeople pitching them “the right solution” for their company. Each sales representative is saying the same thing: you should go with us because... Is that really what the customer wants to hear? Let’s look at 3 reasons why customers hate to be sold.

They’re tired of being told!

Decision makers are more open to a salesperson who asks questions about their needs rather than telling them what they need to do? Yet, surprisingly most sales professionals ask just one or two questions waiting for the first opportunity to go into present mode! REAL needs — the ones that are attached to the biggest budgets — aren’t close to being fully understood. The customer’s true issues aren’t evident, yet the salesperson goes into tell mode or as we experienced in 3rd grade, “show and tell.” Telling is the same as convincing which is just another synonym for selling. What customers prefer is the advice of an expert consultant that asks pertinent questions about their business.

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They’ve lost their place as the center of attention — you have taken their place.

Customers want to talk about their goals, aspirations, the future and their own personal goals. When you present prematurely, the focus and priority is no longer on the customer but on your need to talk about their solution. The right time to present the solution is when the customer asks for it and not before. The customer will ask you to talk about your solution when you have piqued their interest and they have a desire to hear what you have to offer and not a minute sooner. Your job as a GREAT sales professional is to build curiosity in the mind of the customer so that they want to hear more. That is why customers enjoy buying. They see the need for your solution and in their own mind they made the decision and feel good about it.

No one wants to be pressured.

The last thing anyone needs today is more pressure. We live in a world that puts timeframes on everything. Put yourself in your customers’ shoes — they already have enough pressure put on them from their own company to get things done, meet goals and EPI-TIADAhalf APR2020.pdf

2/25/20

objectives and of course meet every deadline. Customers want to buy on their timeline not yours. Think of all the sales incentives that start with, if you make a decision by the end of this month, we will give you... Incentives are attractive only when the customer is ready to make a decision. Would you buy a product or service for half price if you didn’t need it? Neither would I. As you think about the ways to be a more effective sales professional, remember to ask — don’t tell or sell. Make inquiries and keep the focus on your customer. The most successful sales professionals always focus on the needs of their customer. This puts them at the center of attention. When they feel valued for the information they share and you work to craft the right solution at the right time, they don’t feel pressured but instead, curious to find out more about you and your solution. Remember sales is all about building relationships and relationships are built by developing trust. Avoiding typical selling and telling will help both you and your customers succeed. Stu Schlackman is a sales management consultant and speaker out of Richardson, Texas. He can be reached at stu@competitive-excellence.com.

10:29 AM

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The Auction Perspective – A Q&A with Manheim During COVID-19 by Texas Dealer staff

Editor’s Note: Keep in mind, the situation has been and continues to be fluid, and the responses to the questions are from March 19, 2020, and may not reflect what is occurring at the time you read this article.

he Texas Dealer had an opportunity to sit down with Manheim’s Mike Browning, General Manager at San Antonio, and Pete Grupposo, Vice President of Dealer Sales, to give us their insight on what the auctions are doing during these uncertain times of COVID-19.

with

Texas Dealer:

We understand that most corporately owned auctions around the nation have gone to online only sales. What is being done with presale inspections for dealers? Pete Grupposo: First, let me emphasize that the health and safety of our team members and clients remains our top priority. Prior to COVID-19 developments, nearly 50% of Manheim’s transactions were completed through digital channels. At this time, our auction sites are managing pre-sale and post-sale inspections on a day-to-day basis, as staffing is limited due to COVID-19 measures. We will work with our teams to adjust as conditions change.

Texas Dealer:

What is being done to protect your employees and any visitors to the auction facilities? Mike Browning: At this time, we are following the April 2020

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recommended guidance from the CDC. We continue to educate our team members and clients on the importance of practicing safety measures such as social distancing, washing hands regularly with soap and water and using disinfecting wipes on surfaces before touching. All auction facilities are now closed to buyers and sellers on both sale and nonsale days, with the exception to preview sale inventory on the lot and vehicle pick-up and delivery, as staffing and local ordinances permit.

Texas Dealer:

Dealers are always concerned about Condition Reports. Are you enhancing CRs in any way? Mike Browning: For many years, our sellers and buyers have relied on Manheim’s condition reports to help them make critical business decisions. We have made many investments in CRs such as

the Insight Condition Report that features more manufacturer data, crisper photos and improved visuals, making it easier and faster for clients to view important information. We’ve also enhanced our inspection technology and ramped up our training efforts, and that will be our focus until further developments in artificial intelligence occur.

Texas Dealer:

Do you anticipate any supply chain issues with products from vendors, parts, fuel, etc? Pete Grupposo: At this time, we do not anticipate any supply chain issues; however, we are continuously monitoring the situation to ensure we are fully prepared to address any changes.

Texas Dealer:

Obviously there will be cash flow issues with some dealers as business declines. What are you anticipating? 37

Pete Grupposo: We are

monitoring the business environment and have taken actions to respond. This week, we took steps such as suspending fees to sellers for vehicles sold without titles until further notice and temporarily changed our arbitration policy to not allow arbitration on a TA (Title Absent) vehicle until further notice. Also, with the shift to Simulcast-only sales, we are temporarily waiving Simulcast

Success fees to both buyers and sellers.

Texas Dealer:

Transportation of vehicles to and from the auction. Are there any concerns or anticipated bottlenecks. Mike Browning: As more people opt to selfquarantine and local county restrictions limit vehicle deliveries at auction, we anticipate

transportation could be impacted. In addition, as this occurs, working with clients to help redirect their inventory can be challenging, as options are limited. Transportation remains an important service for our dealers, and we will continue to do our best to respond to changing conditions with solutions that help keep their businesses moving.

Texas Dealer:

Are there specific issues for auctions in Texas expressed by corporate, as compared with other regions of the country? Mike Browning: We are working through some of the same challenges as our industry peers across the country. This includes managing work productivity caused by reduced staffing. For example, as people self-quarantine or work to juggle childcare due to school closures, resources are impacted. We continue to adjust schedules and strategies to meet the evolving conditions so that we can continue to meet our clientâ&#x20AC;&#x2122;s needs.

Texas Dealer:

Are there any strategies you have for retailers during this unprecedented outbreak. Pete Grupposo: With evolving COVID-19 developments and the move by auctions to allSimulcast sales, dealers will want to use this digital solution and other remote seller tools to conduct their businesses efficiently and effectively. We understand that these are challenging times, and we are working to ensure the safety of our clients and team members. T e x a s

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Taxability Issues on Service Contracts and Repairs Provided by the Office of the Texas Comptroller

Extended Warranties, Service Contracts, Maintenance Contracts, Repair Parts and Accessories

In the normal course of business, a dealer may need to determine whether tax is due on the sale of an extended warranty, service contract or

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maintenance contract for the repair or maintenance of a motor vehicle. The sale of an extended warranty, service contract or maintenance contract covering the repair or maintenance of a motor vehicle after the manufacturerâ&#x20AC;&#x2122;s warranty expires, is not taxable. (This is in contrast to service contracts covering tangible personal property, such as refrigerators and computers, which are subject to sales tax.) Labor charges to repair or maintain a motor vehicle are not taxable, whether or not the labor is performed under an extended warranty, service contract or maintenance contract. However, all parts, supplies and materials used or consumed in 39

the repair or maintenance are taxable. The type of contract used by the repairperson determines who pays the tax.

Motor Vehicle Sold With an Extended Warranty, Service Contract or Maintenance Contract Extended Warranty, Service Contract or Maintenance Contract Included in the Purchase Price

When a dealer sells a motor vehicle with an extended warranty, service contract, or maintenance contract without separately stating the cost on the invoice, motor vehicle sales tax is computed on the total sales price of the vehicle, which may include the amount the dealer paid for the extended warranty, service contract or maintenance contract. For example, if a dealer sells a motor vehicle with an extended warranty for $22,000 but the cost of the warranty is not separately stated on the invoice, motor vehicle sales tax is calculated on $22,000. 40

Extended Warranty, Service Contract or Maintenance Contract Separately Stated from the Purchase Price

When a dealer sells a motor vehicle and the invoice separately states the charge for an extended warranty, service contract or maintenance contract, motor vehicle tax is due only on the sales price of the motor vehicle. Motor vehicle sales tax is not imposed on the separately stated price of the extended warranty, service contract or maintenance contract. For example, if a dealer sells a motor vehicle for $20,000 and itemizes a $2,000 charge for a service contract, motor vehicle sales tax is calculated only on the $20,000 charged for the motor vehicle. The purchaser of the vehicle does not owe motor vehicle sales tax on the $2,000 charge for the service contract.

Repairs

Labor to repair or maintain a motor vehicle is not taxable, but the parts, supplies and materials used in its repair are taxable. The party responsible for paying the tax depends on whether the repairs are performed under a lump-sum contract or under a separated contract. A separated contract separately states the sales price of parts and materials from the charge for labor; T e x a s

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Repairs Performed under a Lump-Sum Contract

When the repairman states a single charge for parts, materials and labor, the repairman is considered the consumer or end user of the parts and materials and must pay sales tax to his supplier on his purchase price of the parts and materials. The repairman does not collect tax from his customer. (The repairmanâ&#x20AC;&#x2122;s customer for repairs under an extended warranty, service contract or maintenance contract is usually not the vehicle owner, but the company providing the extended warranty, service contract or maintenance contract.)

Repairs Performed under a Separated Contract

a lump-sum contract states a single price for both.

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When the repairman separates the charges for parts and materials from the labor charge, the repairman is selling the parts and materials. The repairman must collect tax on the charge for parts and materials from the customer. (Again, the customer in these instances is usually the company providing the extended warranty, service contract or maintenance contract.)

Goodwill Repairs and Repairs under an Implied Warranty

Repairs that are not covered by any warranty, either written or implied, are “goodwill repairs” and the parts used to make such repairs are taxable to the dealer. For example, if a dealer sells a vehicle “as is”, “with all faults” or using other language that alerts the buyer that there is no warranty of any kind, but makes free repairs, the dealer is responsible for paying sales tax on the parts used to make the “goodwill repair.” However, if within seven calendar days of the sale, a dealer makes free repairs to a motor vehicle that the dealer sold, and the repair is not covered by any written warranty, the repair is deemed to be a repair under an implied warranty and no tax is due on the parts used in the repair.

Repairs to Vehicles Held for Resale

A dealer can purchase parts used to repair motor vehicles held for resale tax free. This also applies to accessories purchased to be installed on motor vehicles held for resale. Again, repair labor is not taxable. The dealer must hold a sales tax permit with the Comptroller and provide the seller of the parts 42

or accessories with a Texas Sales and Use Tax Resale Certificate, Form 01-339 (front) at the time of purchase.

Promised Items

Occasionally, a component or accessory, such as specialty wheels or a missing handle, may not be available for installation when the dealer delivers a motor vehicle to the buyer. The dealer can purchase the component or accessory tax free for resale as long as the item is described in the original sales contract or as an addendum to the sales contract. Motor vehicle sales tax is calculated on the total sales price including any charge for the item to be installed. For more information, see Sales Tax Rule 3.290, Motor Vehicle Repair and Maintenance; Accessories and Equipment Added to Motor Vehicles; Moveable Specialized Equipment and Sales Tax Rule 3.285, Resale Certificates; Sales for Resale, which are available on the Comptroller’s website at www.window. state.tx.us. If you have questions, email us using the form found at www.cpa.state.tx.us/taxhelp or call a tax specialist at 1-800-252-5555. T e x a s

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ATTENTION STUDENTS!!!

$1,000

Marvin Norwood Scholarship DEADLINE

May 11, 2020 {Applications and/or any required documents received after May 11, 2020 will NOT be accepted.}

SCHOLARSHIP APPLICATION Date: Name:

DOB:

Address: City:

Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

State:

Email: (You will received email confirmation of receipt.)

Telephone Number: High School Last Attended:

2. Each applicant must provide a letter from their TIADA member sponsor that includes the sponsor’s address and phone number.

Address:

3. Each applicant must complete the application form.

Date of Graduation:

4. A copy of high school transcripts is required for applicants who are college freshmen. If applicant is currently enrolled, provide college transcripts with official university imprint.

Other High Schools Attended (Names and Addresses):

5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter. 6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area. 7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

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Zip:

City:

State:

Zip:

Dates of Attendance:

College(s) you are attending or plan to attend for admission:

Parents Name(s): TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address: City:

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

feature

Coronavirus Emergency Measures

Provided by the Texas Office of Consumer Credit Commissioner

elow you will find two emergency measures for motor vehicle sales finance licensees to consider in response to COVID-19.

Electronic Signatures

Some OCCC licensees are considering using electronic signatures in response to COVID-19. Electronic signatures are generally allowed under Texas and federal law. The federal E-Sign Act, 15 U.S.C. §§ 7001–7006, includes requirements for electronic disclosures and signatures. The E-Sign Act allows a disclosure to be made electronically only if the consumer consents to an electronic disclosure using a specified procedure that demonstrates the consumer’s ability to receive the disclosure electronically. 15 U.S.C. § 7001(c)(1)(A). Before consenting, the consumer must be given a clear and conspicuous statement of: Any right or option to get the disclosure in non-elec tronic form; The right to withdraw consent and the procedures for and consequences of doing so; What transactions the consumer’s consent applies to; The procedures for updating the information needed to contact the consumer electronically; and How, after consenting to electronic disclosures, to ob tain a paper copy of any disclosures, and whether any fee will be imposed. 15 U.S.C. § 7001(c)(1)(B). The consumer must be given a statement of the hardware and software requirements for access to and retention of electronic records, and must either give consent electronically to receive electronic disclosures, or must confirm consent electronically. 15 U.S.C. § 7001(c)(1)(C). When disclosures are provided electronically, the E-Sign Act requires that the record be retained in a manner that “accurately reflects” the information in the record, and “remains accessible” to all persons in a form that is capable of being accurately reproduced for later reference. 15 U.S.C. § 7001(d). This means that consumers must have a way to keep electronic disclosures for use at a later time.

Activity from Unlicensed Locations

Generally, Chapter 348 of the Texas Finance Code provides that any motor vehicle sales finance activity must occur from a licensed location. This requirement

Some OCCC licensees are considering using electronic signatures in response to COVID-19. Electronic signatures are generally allowed under Texas and federal law. is described in Section 348.501 of the Finance Code, as well as the OCCC’s rule at Title 7, Section 84.603 of the Texas Administrative Code. The OCCC understands that businesses are taking action to protect public safety and minimize the spread of COVID-19. This might include work performed at unlicensed locations (e.g., employees working from home to service transactions). On a temporary basis, the OCCC will not take an enforcement action under the above-listed provisions against licensees that service or collect retail installment transactions from unlicensed locations, if conducted in accordance with the following instructions: A licensee must prepare a written plan or documentation describing what steps it is taking, as well as the locations where servicing or collection is taking place. The licensee must maintain this documentation until the OCCC’s next examination of the affected licensed location. A licensee’s employees must access information in ac cordance with the licensee’s written information security program under the federal Safeguards Rule, 16 C.F.R. pt. 314. A licensee must continue to maintain the security of each consumer’s personal information. If an employee accesses secure electronic informa tion from the company, the employee must use a virtual private network or a similar system that requires

authentication to access. Any devices must have up-to-date security updates or patches. A licensee may not keep any physi cal business records at a location other than a licensed location. All records (physical or electronic) must be accessible from a licensed location. This temporary guidance does not amend the Texas Finance Code, the Texas Administrative Code, or any other requirement of state or federal law. Rather, it describes certain situations where the OCCC will not take

The OCCC understands that businesses are taking action to protect public safety and minimize the spread of COVID-19. enforcement actions against licensees under the above-listed provisions relating to licensed locations. This guidance does not affect any requirements enforced by the Texas Department of Motor Vehicles relating to authorized locations for the sale of a vehicle (e.g., Texas Occupations Code Section 2301.362, Texas Transportation Code Section 503.021). This guidance is in effect through May 31, 2020, but it is subject to earlier revision or withdrawal. The OCCC encourages all Texas citizens to be safe. Additional guidance and updates about COVID-19 are available on the website of the Texas Department of State Health Services. April 2020

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Please Welcome Our Newest TIADA Members DEALER MEMBERS

Challenge Motors Inc

Ali Krayem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11751 Giovanni Ln, Richmond, TX 77406

Knockhill Autosports LLC (DBA Driven)

Stuart Rettie . . . . . . . . . . . . . . . . . . . . 1127 Eldridge Pkwy #300-371, Houston, TX 77077

Payam’s Auto Plex

Mansour Heidari . . . . . . . . . . . . . . . . . . . . . . . . 4119 Blanco Rd., San Antonio, TX 78212

R B Morgan

Rami Mourtaja . . . . . . . . . . . . . . . . . 22400 Westheimer Pkwy, Apt. 912, Katy, TX 77450

Ralo’s Auto Sales LLC

Ralo Pilkington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PO BOX 2186, Marshall, TX 75671

Yale Auto Sales #3

Javier Barrientos . . . . . . . . . . . . . . . . . . . . . . .616 Sheldon Rd, Channel View, TX 77530 ASSOCIATE MEMBERS

ComplyNet, LLC

Adam Crowell . . . . . . . . . . . 7300 N. Cicero Ave., Suite 202, Lincolnwood, IL 60712

Quickview Technologies, Inc.

Harmon “HS” Hardy . . . . . . . . . . . . 3939 Belt Line Rd Ste 190, Addison, TX 75001

Understory Weather

Mike Pilarz . . . . . . . . . . . . . . . . . 4916 E. Broadway, Suite 200, Madison, WI 53716

resource guide The TIADA Website: www.txiada.org Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base. Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller 800.252.1382 www.window.state.tx.us NIADA 800.682.3837 www.niada.com

REPOSSESSIONS American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office

FORMS Burrell Printing 800.252.9154 www.burrellprinting.com

behind the wheel

Martin

We’ve Been Hacked

n February 24th around 6:50 PM I received the following message via email: “Man, we had a ransomware attack at work over the weekend. They’re holding our entire network hostage for $240,000, but we aren’t gonna pay cuz we had offsite backups of all the data. They’re just gonna rebuild the entire network from the ground up.” When I first read the message, I was standing in our kitchen about to dig into some leftover fajitas. I had just gotten home from working out, so I had been away from my computer and phone for about an hour and a half. I quickly glanced at to the top of my screen and could see I had missed three calls. I figured one was from Sheila, she sent the email and she is the IT expert in the office. At this point my appetite was gone and a little bit of panic started to set in. My wife, who could sense I had just received some bad news, asked if everything was ok. I repeated what I had read while at the same time sent a text to Sheila to get more information, setup a phone call and start working towards our recovery plan. Ten thousand things were going through my mind. We had discussed this very scenario in the past. I knew we back up the files on our server every 24 hours because we faced a similar issue in the past that caused us to “rebuild” a file on our server. Years ago, we switched to a web-based member database for enhanced security and so we could operate seamlessly if we were ever attacked. But $240,000 seemed stark. Maybe I had missed something? Maybe there was a

by Jeff

TIADA EXECUTIVE DIRECTOR

much bigger threat than I knew? For a guy who tries to be fairly even keel, I was in full on freak-out mode. I also started thinking about emails I might have received in the past. Did I click on some stupid link or did someone on our team click on a link from some junk or spam email? Sheila is always warning us about that kind of thing, and I think our team is very good about deleting suspicious emails, but let’s face it, there are a bunch of emails floating around and now it had happened to us. Within minutes I received a text back from Sheila. It said, “That was from my brother, his company in Durango. It’s a mid-size engineering company and they will be down for weeks. This just made me think we need to remind our members.” Whew, so it’s not us? After I caught my breath I went back and read the original email. Sure enough, I missed the part at the very beginning that said, “This came from my brother…” Yes, there are several subtle messages here. Slow down and read the entire email would probably be the first message. People who scan emails quickly are probably more prone to click on some link that would allow a virus into their server. But the message that will stick with me the most is that these attacks are for real, I almost know what it’s like. Over the next few months you will see some blogs, stories and emails as we do our part to help you put measures in place to protect your data and remind you that it can happen to anyone.

...we [will] do our part to help you put measures in place to protect your data and remind you that it can happen to anyone. 46

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